My friend wants to invest in my upstart clothing company?

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Hey, I have a friend who wants to invest in my upstart clothing company and I wanted to see if anyone knew how I should go about selling stock or interest in my company.

I haven't incorporated yet but can do that. I just wanted to know if I have to get a lawyer to help me write everything up or can I do it in a simpler and more cost effective way.

Also the amount of interest I am going to sell him is 5% of my company for 25K.

Can I go to Legal Zoom for something like this?

Thanks!
#main internet marketing discussion forum #clothing #company #friend #invest #upstart
  • Legal Zoom can set up corporations and divide stock however you tell them but a lawyer might get you and your friend better protections.

    YMMV...
  • Just go and find a lawyer. The first hour of consultation is usually free and setting up a corporation should not cost more than a few hundred bucks anyhow.
  • See a lawyer... period. This may seem like a simple
    proposition to you but that's because you are unaware
    of the potential pitfalls and liabilities of what you're
    considering.
  • Legalzoom is your option. If you can meet offline lawyer, that is best. Anyhow, congrats on opening of your clothing line
  • For what you are describing, I'd recommend not only getting a lawyer, but get someone local that you deal with in person and build a relationship with. Most "real" businesses should build a great relationship with a local attorney, CPA, etc.
    • [1] reply
    • What he said.

      Having a lawyer you can talk to whenever you are in legal dire straits is important. Plus, legalese is confusing, and while most online companies will help you get set up etc, nothing beats having a lawyer explain it to you in terms you understand.
  • 5% for $25k values your company at $500k. Absolutely no doubt that you need a lawyer.
  • You should definitely seek advice before signing any agreement.
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    My friend wants to invest in my upstart clothing company?

    Hey, I have a friend who wants to invest in my upstart clothing company and I wanted to see if anyone knew how I should go about selling stock or interest in my company. I haven't incorporated yet but can do that. I just wanted to know if I have to get a lawyer to help me write everything up or can I do it in a simpler and more cost effective way.